When should special pricing orders be accepted?

Q: What is the decision rule concerning products to emphasize when facing a constraint?

A: Constraint management is a management technique used to make decisions about production and sales…

Q: Explain what is Make-or-Buy Decision?

A: Decision making: It is a vital capacity in the management, since decision making is identified with…

Q: What is a price standard?

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Define pricing decisions.

A: Selling Price:   It refers to the price at which the product or service will be sold in the market…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: Describe the downward demand spiral and its implications for pricing decisions.

A: Downward Demand Spiral: A downward demand spiral is a continuing reduction in the demand for a…

Q: Define the term make-or-buy (or outsourcing) analysis?

A: Make or buy: purchasing of goods from the outside vendors is called outsourcing.

Q: Distinguish between market-skimming pricing and market-penetration pricing.

A: Product pricing strategies: There are two product pricing strategies of a company. They are,…

Q: What Is Prerequisites for Successful Target and Cost-Based Pricing?

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Define special pricing.

A: Pricing: Pricing is a process where manufacturing company fixes prices for the products that are…

Q: What are input flexibility options and output flexibility options?

A: The question is based on the concept of production process. The managers can use variation in Input…

Q: What is offer price?

A: Bid price is the maximum price which the buyer is willing to pay to purchase. In other words, it…

Q: What does the lower-of-cost-or-market (LCM) rule require?

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

Q: What questions should managers answer when considering special pricing orders?

A: Definition:   Special Pricing: When businesses get Special orders from its customers for bulk…

Q: Describe two alternative approaches to long-run pricing decisions.

A:

Q: How does opportunity cost enter into a make or buy decision?

A: Opportunity Cost:   Opportunity Cost is the future capacity or potential advantage that can be…

Q: What are the differences among a stop-loss order, a limit sell order, and a market order?

A: A stop-loss order: A stop-loss order is a tool used by traders and investors to limit losses and…

Q: What is flexibility option?

A: A financial instrument that provides the opportunity to the buyer and seller to purchase and sell…

Q: Define the term pricing decisions.

A: Selling Price:   It refers to the price at which the product or service will be sold in the market…

Q: Distinguish between the downward demand spiral and the ramifications of this for price choices

A: This question tells about  the downward demand spiral and the ramifications of this for price…

Q: What is target pricing? Who uses it?

A: Target pricing: A pricing method which is used to identify the price at which the product will be…

Q: Describe the uses of target pricing.

A: Target pricing: A pricing method which is used to identify the price at which the product will be…

Q: How does capacity affect transfer pricing decisions?

A:

Q: What are the three major influences on pricing decisions?

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a…

Q: Define the Make-or-Buy Decision?

A: A make or buy decision is to choose whether to manufacture the produce in-house or purchase it from…

Q: What is the make or buy decision?

A: Managerial accounting:   Managerial accounting is more focused towards analyzing information and…

Q: Why do you think that having a price structure important?

A: Pricing strategies are the methods companies use to price products and services. Almost all…

Q: What is a quantity standard? What is a price standard?

A: Quantity Standard : A quantity standard is the amount of an input, such as labor time or raw…

Q: What is importants of Price and quality?

A: Price plays an important role for buyers and sellers both because the seller wants to charge a high…

Q: Discuss the differences between a market order, limit order, and stop order.

A: Solution: Stock market is the place where securities are traded in market. There are different types…

Q: What is the quantity decision? The pricing decision?

A:

Q: What is the formulae used to find markup price?

A: Markup price is the price that the player comes up with after adding the mark up to the cost price…

Q: What is frequency regarding the make or buy decision?

A: Make or Buy: Make or Buy decision are normal condition arises in front of management due to…

Q: Conceptually, how would you evaluate a quantity discount offerfrom a supplier?

A:

Q: What’s the difference between order and volume discounts? Justify your answer.

A: Manufacturers and sellers utilize volume discount pricing, or volume discounting, to reward…

Q: Retailers often use psychological pricing as a price-adjustment strategy. Explain this pricing…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Define the term price-setters.

A: When a company cannot dictate prices then it is known as price taker. On the contrary, when a…

Q: How is the price of an item established in a target pricing contract?

A: Target pricing is the approach which is innovative and used at the initial stage of the new…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.